Global Imbalances and Developing Countries
Remedies for a Failing International Financial System
Editors: Jan Joost Teunissen and Age Akkerman
The abrupt unwinding of global imbalances is a major risk for the world economy; it affects countries across the globe, but is particularly harmful to developing countries.
This second volume on global imbalances includes an unorthodox, long-term view on global imbalances, an in-depth discussion about the role of the IMF, and a discussion about the need for reform of the international monetary and financial system. It pays special attention to Africa and East Asia.
Recalling that the US current account deficit—which accounts for 70 percent of the world sum of current account deficits, hence absorbs 70 percent of net available global saving—lies at the heart of the problem, the contributing authors stress that the present global imbalances cannot be sustained indefinitely.
The authors suggest various remedies, ranging from capital market integration in East Asia to the creation of an international clearing agency that would serve as the institutional platform for a new global payments system. Some authors question the viability of far-reaching reform proposals while others stress the need for designing challenging remedies—not only for the sake of anticipating a breakdown in the world financial system but also because the current system (or non-system as some call it) can benefit from ideas for improvements.
Contributing Authors: Martín Abeles, Mark Allen, Jane D' Arista, Henk Brouwer, Ariel Buira, Seeun Jeong, Brian Kahn, Louis Kasekende, Li-Gang Liu, Yonghyup Oh, Willem Thorbecke, William White, John Williamson, Masaru Yoshitomi
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